KBRA Affirms All Ratings for Atrium Hotel Portfolio Trust 2017-ATRM
18 Oct 2024 | New York
KBRA affirms ratings for all classes of Atrium Hotel Portfolio Trust 2017-ATRM, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has demonstrated stable performance since KBRA’s last ratings change in October 2021.
The floating rate loan was originally structured with five, one-year extension options and a fully extended maturity date of December 2024. In 2021, in connection with a COVID related modification, two additional one-year extension periods were added producing a fully extended maturity date of December 1, 2026.
The transaction collateral is a non-recourse, first lien mortgage loan secured by the borrowers’ fee simple interests in 23 lodging properties totaling 5,443 keys, the fee simple and leasehold interest in one hotel totaling 234 keys, and the leasehold interest in two hotels totaling 553 keys. Specifically, the portfolio is comprised of 22 full-service hotels (94.2%), two limited-service hotels (3.0%) and two extended-stay hotels (2.8%) with three major brands, including Hilton, IHG, and Marriott, under eight national chain affiliations plus one independent hotel. The underlying collateral properties are located in 26 different MSAs in 15 states. The properties are cross-collateralized and cross-defaulted and the loan has an outstanding principal balance of $573.1 million ($91,994 per key) as of October 2024. The loan sponsor is Atrium Holding Company.
The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis produced a KNCF of $45.2 million and a KBRA value of $404.1 million ($64,859 per key). The resulting KLTV is 141.8%, a change from 142.4% at last review, and 91.4% at securitization. KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on the decline in the portfolio’s performance since securitization.
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